Investcorp plans talks with Abu Dhabi’s ADIA to see if it can broaden its investor base.
Investcorp expects to reach its target of $25 billion for assets under management (AUM) next year, by which time it will have a strategy formulated to take the measure to $100 billion, chairman Mohammed al-Ardhi said late on Wednesday.
The alternative investment firm had set an aim in November 2015 of more than doubling its AUM over a period of seven years from $11 billion, a feat Ardhi believed would put it into the top tier of global investment companies. The acquisition of the debt-management business of Britain’s 3i Group PLC for 222 million pounds ($275.5 million), announced last month, has increased its AUM to $23 billion within the first year of the target.
“This time next year, with these initiatives behind us, we will be at $25 billion,” Ardhi told a dinner audience ahead of the firm’s investor day.
Apart from 3i, Investcorp has also announced deals in the past 12 months for a 55 percent stake in Italian menswear company Corneliani, a minority stake in Saudi Arabian supermarket group Bindawood Holding, and cybersecurity firms Securelink and Nebulas.
“At that point, we will put a strategy in place – a strategy we will discuss with you – for becoming the first asset manager in the region to reach $100 billion AUM,” Ardhi said, adding it would talk more about how the plan will be next year.
The investment firm is also planning to approach Abu Dhabi Investment Authority (ADIA), in a bid to broaden its investor base.
In July this year, Abu Dhabi state investment fund Mubadala agreed to acquire a 20 percent stake in Investcorp at an undisclosed value.
With our newly acquired business, debt management, this is going to be again a very good product that I am sure Mubadala and ADIA will be interested in looking at, Alardhi told The National.
“ADIA is a very important investor globally, a huge sovereign fund. ADIA is somebody we will be approaching to see what opportunities again we can work together on.”
The company is considering a $2.5 billion (AED9.18 billion) private equity deal and plans to launch two funds next year. The $400 million (AED1.47 billion) to $500 million (AED1.84 billion) Tech 4 fund will target technology companies in Europe, while the healthcare fund will focus on the Arabian Gulf region and will be in the range of $800 million (AED2.94 billion) to $1 billion (AED3.6744 billion).
Investcorp is also planning to set up a $2 billion (AED7.35 billion) fund targeted at Asian investments into the Gulf region. It also plans to continue investing at least $1 billion (AED3.67 billion) in real estate in the United States and invest $250 million (AED918 million) each year in property across Europe, particularly the UK and Germany, the newspaper said.